The common law doctrine of privity of contract provides that only
the parties to a contract can sue or be sued on the contract. Thus, a
person not a party to the contract cannot enforce the terms of the
contract even if they are for his benefit. The privity doctrine has been
criticized for a long time in common law countries as contrary to the
parties' intention to provide a benefit to a third party. As a result, in
many of these countries statutory laws have been approved to provide
a basis for third parties to enforce the terms agreed for their benefits.
This article discusses the development of the privity doctrine in
common law and its current status in England, United States and
Australia
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